November brings more wages and pensions. Know what to count on

Othe salaries and pensions of november will be filled more, since government announced on Tuesday a iRS retention at source will get a 50% cut in November to reflect the interim drop in the tax approved in Parliament. Then, in December, the current rates will be applied again. 

In a press release sent to the editorials, the Ministry of Finance explains that “after approval in Parliament of the new reduction of the IRS, with effect from 1 January 2026, the Government decided to reduce the withholdings at the source by 50% for income from work and pensions paid during the month of November, including the Christmas allowance due that month“.

Government puts more money in families' pockets before Christmas

The adjustment of the November tables happens so that “the families immediately benefit from this descent and do not have to wait for the IRS to settle next year“, justifies the government.

Relief seeks to translate, with retroactive effects at the beginning of this year, the lowering of IRS rates in the first six income steps.

In December, “the retention tables at the current source apply again“, the Ministry of Finance is still ahead.

To be known the new retention tables to be applied in November, the government will send out an order, which the Ministry says “has already been issued” and which should “be published soon”.

The mid-term decrease was approved urgently last friday, in general, in the specialty and in overall final vote, to authorise the Government to amend the IRS Code, by going through the fees that will apply to the total income of 2026.

When, in 2027, the tax calculates the IRS on incomes of 2026, rather than using as a reference the rates currently in force, it will take into account the rates that will apply on 31 December 2026, with a reduction of between 0.3 and 0.5 percentage points decided by the executive until the 6th step.

The mechanism of withholding at source adapts monthly collection to this interim relief, concentrating degravation in a single month, with effect either on the monthly salary or pension, or on the Christmas allowance, which is subject to withholding at source independently from wages or retirement.

November will be a “special” month

With specific fees for the month of November, this will oblige companies and other wage and pension payers – such as Social Security and the General Pensions Fund – to adapt their computer systems to apply three different retention tables in three consecutive months.

November tables reflect additional descent, December will have rates equal to those in force from January to October, and in January 2027 other tables should apply to reflect the reduction of the IRS foreseen in the State Budget to 2027 with the updating of the echelons, the increase of the minimum existence and specific deduction.

Withdrawal fees do not correspond directly to the rates of the nine income tiers, acting as a regular tax collection mechanism, for taxpayers to pay IRS in a fractional manner over the 12 months of the year.

Next year, there's a reckoning

The State takes the value on its side and, at the time of the final calculation of the IRS on all the incomes of 2026, the settlement of accounts, whether the person receives a refund, whether he still has to deliver any more money to the tax office or whether there is nothing to deliver or receive.

In the wording adopted in Parliament, the rate of the 1st step goes from 12.50% to 12.20%. The 2nd step goes from 15.70% to 15.20%. The 3rd drop from 21.20% to 20.20%. On the fourth step there's a 24.1% downgrade to 23.60%). The rate of the 5th share of income goes from 31.10% to 30.60%. On the sixth step, the rate drops from 34.90% to 34.60%. In the following steps, the rates remain the same: 43.10% in the 7th, 44.60% in the 8th and 48.0% in the 9th.